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The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.50-gallon can of chemical call for 1.20 gallons of material and 1.40 hours of labor. (1.20 gallons of material are needed to produce a 0.50-gallon can of product due to evaporation) The standard cost per gallon of material is $5. The standard cost per hour for labor is $9. Overhead is applied at the rate of $7.78 per can. Expected production is 21,600 cans with fixed overhead per year of $60,048 and variable overhead of $5 per unit (a 0.50-gallon can). During 2021, 22,800 cans were produced; 36,300 gallons of material were purchased at a cost of $245,388; 29,000 gallons of material were used in production. The cost of direct labor incurred in 2021 was $282,842 based on an average actual wage rate of $8.90 per hour. Actual overhead for 2021 was $219,200. (a) Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Standard cost per unit

The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.50-gallon can of chemical call for 1.20 gallons of material and 1.40 hours of labor. (1.20 gallons of material are needed to produce a 0.50-gallon can of product due to evaporation) The standard cost per gallon of material is $5. The standard cost per hour for labor is $9. Overhead is applied at the rate of $7.78 per can. Expected production is 21,600 cans with fixed overhead per year of $60,048 and variable overhead of $5 per unit (a 0.50-gallon can). During 2021, 22,800 cans were produced; 36,300 gallons of material were purchased at a cost of $245,388; 29,000 gallons of material were used in production. The cost of direct labor incurred in 2021 was $282,842 based on an average actual wage rate of $8.90 per hour. Actual overhead for 2021 was $219,200. (a) Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Standard cost per unit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.50-gallon can of chemical call for 1.20 gallons of material and 1.40 hours of labor. (1.20 gallons of material are needed to produce a 0.50-gallon can of product due to evaporation.) The standard cost per gallon of material is $5. The standard cost per hour for labor is $9.Overhead is applied at the rate of $7.78 per can. Expected production is 21,600 cans with fixed overhead per year of $60,048 and variable overhead of $5 per unit (a 0.50-gallon can). During 2021, 22,800 cans were produced; 36,300 gallons of material were purchased at a cost of $245,388; 29,000 gallons of material were used in production. The cost of direct labor incurred in 2021 was $282,842 based on an average actual wage rate of $8.90 per hour. Actual overhead for 2021 was $219,200. (a) Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Standard cost S per unit
Transcribed Image Text:The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per 0.50-gallon can of chemical call for 1.20 gallons of material and 1.40 hours of labor. (1.20 gallons of material are needed to produce a 0.50-gallon can of product due to evaporation.) The standard cost per gallon of material is $5. The standard cost per hour for labor is $9.Overhead is applied at the rate of $7.78 per can. Expected production is 21,600 cans with fixed overhead per year of $60,048 and variable overhead of $5 per unit (a 0.50-gallon can). During 2021, 22,800 cans were produced; 36,300 gallons of material were purchased at a cost of $245,388; 29,000 gallons of material were used in production. The cost of direct labor incurred in 2021 was $282,842 based on an average actual wage rate of $8.90 per hour. Actual overhead for 2021 was $219,200. (a) Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Standard cost S per unit
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